New Mandatory Definition of “Engaging in Business”

Sep 13, 2018

In the 2017 Legislative Session, the Legislature passed Engrossed House Bill 2005 requiring that all cities with business licenses to administer their licensing through the state’s Business Licensing System, to adopt business license language with a minimum threshold, and adopt a mandatory definition of “engaging in business.”

The minimum threshold for engaging in business is now $2,000 per year in cities for businesses that do not have a location in a specific city they are working in AND require a registration with no fee for business under the threshold. Industry is particularly affected.

Gig Harbor, Puyallup, and Bonney Lake are among the municipalities that have had first readings of the ordinance this week. Most all jurisdictions in Pierce County are updating their definitions this month. Fees tend to be about $35 in each jurisdiction.